MCQOPTIONS
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| 1. |
A negatively sloped yield curve suggests that |
| A. | Short-term rates exceed long-term rates, and the Federal Reserve is following a tight monetary policy |
| B. | Short-term rates exceed long-term rates, and the Federal Reserve is following an easy monetary policy |
| C. | Long-term rates exceed short-term rates, and the Federal Reserve is following a tight monetary policy |
| D. | Long-term rates exceed short-term rates, and the Federal Reserve is following an easy monetary policy |
| Answer» B. Short-term rates exceed long-term rates, and the Federal Reserve is following an easy monetary policy | |